How should the affect the US demand for British pounds

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Question 1: Assume U.S interest rate falls relative to British interest rates. other things being equal, how should this affect the (a) U.S demand for British pounds, (b) supply of pounds for sale and, (c) equilibrium value of the pound?

Question 2: If the asian countries experience a decline in economic growth (and experience a decline in inflation and interest rates as a result), how will their currency values (relative to the U.S dollars ) be affected?

Reference no: EM132582184

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